Sour Milk
Created By Correspondent
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The raging battle over the Kolhapur -based Gokul milk cooperative, a Rs. 3,960-crore dairy enterprise based in Kolhapur, has laid bare the jockeying for political influence and financial patronage that typically pervades the politics of rural Maharashtra.
Ostensibly a cooperative owned by milk producers, Gokul has always been a formidable network of money, influence and electoral mobilisation.
Its significance has extended well beyond dairy production. Maharashtra’s cooperative economy operates through an interconnected network of district cooperative banks, sugar factories, dairies and educational institutions. Banks extend credit to farmers, who supply milk or sugarcane to cooperative processing units. Loan repayments are often deducted directly from their payments and routed back to the banks. Those who control these institutions consequently command considerable economic influence over rural communities.
The system owes much of its political architecture to NCP founder Sharad Pawar, who consolidated a formidable network of cooperative institutions across western Maharashtra in the 1970s and 80s, encouraging loyal regional leaders to establish and manage sugar factories, dairies, banks and educational trusts. These institutions provided employment, credit, education and political patronage. A farmer could sell milk to one institution, borrow from another and send his children to a college controlled by the same political establishment. Challenging this arrangement meant taking on an entire ecosystem, not merely an individual politician.
This structure is now under strain. The splits in the NCP and Shiv Sena have fractured established political loyalties, turning cooperative institutions into battlegrounds for rival factions. District cooperative bank boards have now become vulnerable to defections and factional manoeuvring.
The Gokul confrontation is the latest manifestation of this churn. In the board elections last month, a Congress-led panel secured 13 of the 25 seats, defeating the Mahayuti, which won 12. The state government subsequently cleared an ordinance permitting four government-nominated members, with voting rights, on the boards of large cooperative institutions.
The opposition, led by Congress leader Satej Patil, has accused the government of overturning the electoral verdict. Rahul Gandhi has described the move as an adulteration of the mandate. Yet the indignation carries its own irony. Political parties that have long exploited cooperative institutions to consolidate their rural strongholds are now invoking democratic principles when the same machinery threatens their control.
The farmer, meanwhile, remains a convenient prop in a contest between political establishments.
The real cost of this power struggle is borne by milk producers. Procurement prices for cow milk reportedly remain as low as Rs. 24-27 per litre, even as urban consumers pay substantially more. Recent sugarcane farmers’ protests and highway blockades further disrupted supplies, leaving an estimated 7.5 lakh litres of Gokul milk stranded en route to Mumbai and Pune.
Maharashtra’s cooperative movement once promised farmers a share in prosperity. Regrettably, its political custodians appear more interested in deciding who gets to milk the system.
